Binance, the world’s largest cryptocurrency exchange, is partnering with crypto-friendly trading firm Franklin Templeton to offer an off-exchange institutional collateral program that makes digital markets safer and capital efficient.
The new service allows eligible clients to use tokenized money market fund shares issued through Franklin Templeton’s Benji Technology Platform as off-exchange collateral to trade on Binance using Ceffu, the exchange’s partner depository.
The program alleviates a long-standing pain point for institutional traders by allowing them to use traditional, regulated, yield-bearing money market fund assets in digital markets without having to park them on an exchange, according to a press release.
The value of Benji-issued fund shares is reflected in Binance’s trading environment, while the tokenized assets themselves are held securely off-exchange in regulated custody. This reduces counterparty risk and lets institutional participants earn returns and support their trading activity without uncovering custody, liquidity or regulatory protection, the firms said.
“Partnering with Franklin Templeton to offer real-world tokenized assets for OTC collateral settlement is a natural next step in our mission to bring digital assets and traditional finance closer together,” said Catherine Chen, Head of VIP & Institutional at Binance.
